We present a novel iterative decoding algorithm for Reed-Muller (RM) codes, which takes advantage of a graph representation of the code. Vertices of the considered graph correspond to codewords, with two vertices being connected by an edge if and only if the Hamming distance between the corresponding codewords equals the minimum distance of the code. The algorithm uses a greedy local search to find a node optimizing a metric, e.g. the correlation between the received vector and the corresponding codeword. In addition, the cyclic redundancy check can be used to terminate the search as soon as a valid codeword is found, leading to an improvement in the average computational complexity of the algorithm. Simulation results for both binary symmetric channel and additive white Gaussian noise channel show that the presented decoder approaches the performance of maximum likelihood decoding for RM codes of length less than 1024 and for the second-order RM codes of length less than 4096. Moreover, it is demonstrated that the considered decoding approach outperforms state-of-the-art decoding algorithms of RM codes with similar computational complexity for a wide range of block lengths and rates.